We head to our nearest ATM to make money as soon as the money runs out. Have you ever tried to figure out what is ATM? and how does it work on the network.
We have always gone to the bank to deposit and withdraw money since it opened. We must use a check for this, and many people today are unaware of what is ATM or how important it is.
The full form of ATM is Automated Teller Machine. It is a machine that is computerized and controlled by telecommunications where customers do their money transactions. It is also called Automatic Banking Machine.
This is why, in today’s post, we will provide you with all of the knowledge necessary to dispel any misconceptions you may have regarding ATMs and to enable you to begin utilizing and comprehending them. Will be able to understand how this machine works and how to use an ATM to withdraw money.
What is ATM?
ATM is an automatic machine which is especially a computer that gives great convenience in managing the money of the account holder. With this, any account holder who has an account in the bank can check the balance and keep information about his remaining money, withdraw money and also take a print of the transactions.
This is such an electronic machine in which we would have done our basic transactions without going to the bank. Whoever has a credit card or debit card can go into ATM and do his transaction comfortably.
ATMs were used for the first time in the world in 1967 then within 50 years, they have spread everywhere in the whole world. If you go to every major country or even a small country you will see ATMs.
ATM has a convenient machine that works very fast. Using this we can withdraw money within just a few minutes.
Because of this people no longer have to stand in long lines in the bank to withdraw money. Apart from this, some complex tasks like bill payments and money can also be sent to other accounts of the same branch by debit card number.
Who invented the ATM?
ATM was invented by John Shepherd Barron in June 1967. He was born in Shillong, Meghalaya, India and his parents were Scottish. He spent much of his later life in Portmahomack, Ross-Shire.
The ATM had manufactured by Shepherd Barron within just a month defeated Goodfellow’s machines that were installed at Westminster Bank branches. Because of this Shepherd Barron became very famous as the creator of the cash machine and he was appreciated as “the man who invented the cash machine”.
How does ATM work?
ATM is a type of data terminal which has two input and four output devices. Like other data terminals, it is also connected and communicated with the host processor.
The host processor is connected to an Internet Service Provider (ISP) to which each ATM creates a means for connecting to the network and provides service to all cardholders.
Types of ATM Machine
Most host processors support Leased line or Dial-up machines. Leased line machines use four wires to connect to the host processor which is a point-to-point connection and requires a dedicated telephone line.
The same Dial-up machines use a normal phone line to connect to the host processor using a modem that also uses a toll-free number.
Leased Line due to its throughput capability such ATM is preferred in places with very high population.
Dial-up ATMs are preferred for retail merchant locations as they cost more than throughput. The cost of a Dial-up machine is less than half of the leased machine.
The monthly charge of this is a very small part of the leased machine. The host processor may be owned by a bank or financial institution or maybe with an independent service provider.
The host processors which are owned by the bank while the host processors are independent are also owned by the merchant.
History of ATM
An automated teller machine, or ATM for short, allows individuals to deposit money into a bank account and take the money all from the same machine. It’s also known as a mash-up of a few inventions.
The first automated machine was used to collect only checks and did the work of depositing cash. It was invented by American businessman and inventor Luthar Simjian in 1960.
Then Scottish inventor John Shepherd Barron created the ATM which used printed paper vouchers with radioactive ink. It was constructed in 1967.
John Shepherd Barron the inventor of ATM was born on 23 June 1925 in India. The world’s first ATM came into existence in June 1967 at Barclays Enfield town branch in North London.
The story behind this is that when Mr. Shepherd saw a vending machine selling chocolate bars he asked himself why the same machine could not be used to withdraw cash.
In 1970, a few years after the invention of the ATM a patent for the concept of a personal identification number was granted to British engineer James Goodfellow which was stored on a bank card.
This achievement was huge in the field of self banking service as it had the security of verifying your identity without being a human being.
The PIN system was licensed by Future entrance in ATM markets such as NCR.
Finally, in 1969, Donald Wetzel built an ATM in the United States that used plastic cards similar to what we use today.
ATM is a sophisticated computer that can do the same work that a human teller does in the bank.
In general, ATM is a group of devices given below. A computer, a magnetic chip/card reader, a keypad, a display screen, a printer, and a vault.
. Most ATMs communicate with the bank by connecting to the interbank network.
. Each customer uses a plastic card that contains a magnetic tape or smart chip containing a unique card number and security information.
. To use it, the customer uses a personal identification number ie PIN for authentication.
. Every person can do any type of transaction for about 24 hours without going to the bank, so it does not matter whether the bank is open or not.
. There are about two million i.e. 20 lakh ATM in the whole world.
. The first form of self-banking service was ATM only after which mobile banking and internet banking came into existence.
. Many other industries also saw the popularity of these machines and they also prepared plans to sell their products through it, today you will see that the facility of booking movie tickets from ATMs has started.
Importance of ATM
The need to deposit and withdraw money by standing in a long line in the bank is now over. Due to this, there was no crowd inside the bank and this also gave a good opportunity to do other work in the bank.
Due to the cash, there was always a danger of being stolen or lost in keeping it in the house, which has now been completely eradicated. ATM provided the facility to withdraw money anytime and anywhere in India.
Wherever your bank it doesn’t matter, you just have to find an ATM and from there you can withdraw your money very easily.
You can also use the ATM of any other bank, you just deduct Rs 20 as a processing charge after 5 withdrawals.
If there was no ATM even today, then you can understand what would have happened. The population of India is such that there would have been a long line to withdraw money from the bank and how much trouble would have to be faced in completing any work.
Even people started shying away from putting money in the bank and the cashless method could not be started.
When you have to go far away and take a large amount then you do not need to carry cash at all, you can reach that place and withdraw your money from the nearest ATM there.
If you go somewhere for traveling, you do not need to carry money. You can use your ATM card easily.
Advantages of ATM
. You go to any part of the country from small to big cities you will see ATMs everywhere.
. Every bank issues ATM to its customers so that customer does not have to go to the bank to withdraw money, but withdraw it from the ATM itself.
. Even if your ATM card is lost no one will be able to misuse it because after every card is inserted in the ATM a 4 digit PIN code has to be entered.
. You can block a lost ATM by complaining so that it gets deactivated.
. You do not need to go at any particular time to withdraw money from ATM, you can go anytime in 24 hours.
How to withdraw money from ATM?
Let us now tell you how to withdraw money from ATMs. There are still many people who do not know how to withdraw from ATMs.
Doesn’t matter because with the help of the steps mentioned here, you will also know how to use ATM and after that, you will be able to withdraw the money yourself by going to ATM.
1. First of all go to your nearest ATM, you will see ATM slots in which you have to put your ATM card or a credit card.
2. Earlier, the ATM had to be taken out in 1-2 seconds but now not only until the account verification but the money is kept to protect the process of transaction inside the ATM card slot until the withdrawal.
3. Now in the next step you will be given the option of choosing the language of your choice. In this, you get Hindi, English, and regional languages.
4. After you choose your language, you have to authenticate your 4 digit PIN. Here you always have to pay attention you can stand up in such a way to cover up the Key Pad so that the person behind you or any hidden camera can’t see what you enter as a PIN. Also, you can keep your left hand covering the PIN pad while you type the PIN.
5. After your account is successfully authenticated, you can see the transaction option which is given below. Fast Cash, Cash Withdrawal, Mini statement, Balance Enquiry.
6. If you want to check the balance of your account then you can check it by pressing the button of the option of balance inquiry. When and how much transaction has happened in your account, you can print it after pressing the button of the Mini statement.
7. You can withdraw money from both Fast Cash and Withdrawal, but the amount is already written in Fast Cash, whereas with Withdrawal you can withdraw by entering the amount of your choice.
8. When you select the option of cash withdrawal and proceed further, you will see two options Saving account and Current account which you have to choose according to your account.
9. If your account is saving then choose the saving account and if your account is current then choose a current account.
10. After this you will get the option of filling the amount in which the amount you want to withdraw put that amount in numbers with the help of the keyboard.
11. Keep in mind that you can always withdraw the amount in multiples of 100 at any time in the ATM. Like 100, 200, 300, 500, 2000. This kind of amount will never come out like 150, 550, 1250, etc.
12. Nowhere in the next step will ask you to enter the amount you want to withdraw from the ATM and click on Confirm (Yes or No).
13. In the next step, it will ask you if you want to print transactions from your account. If yes then press on yes, and neither click on no.
14. When the transaction of your account is correct, your money will come out with a box in the bottom and collect it.
15. Now your print will also come out after which you do not have to do anything just press the Cancel button to protect your account.
What did you learn today?
I hope you must have liked my article, What is ATM. It has always been my endeavor to provide complete information to the readers about What is ATM and How to withdraw money from ATM so that they do not have to search other sites or the internet.
This will also save their time and they will also get all the information in one place. If you have any doubts about this article or you want that there should be some improvement in it then you can write comments for this.
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